ING discusses USD/JPY technical outlook and maintains a tactical neutral bias, flagging a bearish setup on selling rallies towards the 111.70-112.15 resistance area.
"Prices are nearing the horizontal line around 111.70 with the long-term falling trend line offering next resistance around 112.25. This is suggesting limited upside potential in the development of a short-term top. The short-term upward bias within the trading range remains intact as long as prices are staying above the long-term moving average lines with the EMA-200 line at 111.00 and the slowly rising MA-50 line at 110.66.
We recommend selling the rallies towards the 111.70-112.15 resistance area," ING notes.